Liberty Mutual has completed the acquisition of State Auto Group, a super-regional property and casualty insurance holding company headquartered in Columbus, Ohio.
State Auto distributes personal and small commercial coverages in 33 states through approximately 3,400 independent agents.
The company has confirmed that over 2,000 State Auto employees will join Liberty Mutual’s Global Retail Markets US business unit.
Through the mutual transaction and merger, Liberty Mutual adds $2.3 billion in premium and becomes the second-largest carrier in the independent agent channel.
Under the terms of the agreement, State Automobile Mutual Insurance Company members became mutual members of Liberty Mutual Holding Company and Liberty Mutual acquired all of the publicly held shares of common stock of State Auto Financial Corp, for $52 per share in an all-cash-deal of approximately $1 billion.
The companies will continue to operate as separate businesses throughout most of 2022.
Liberty Mutual President & COO, Global Retail Markets US, Hamid Mirza commented: “Across Liberty Mutual and State Auto, we have a shared commitment to the Independent Agency channel and being the carrier of choice for independent agents.
“We are closely aligned in how we put people first, strive to make things better, and behave with integrity every day. Together, we’ll be a leader in both the personal lines and small commercial insurance markets, helping policyholders when they need it most and giving our people more opportunities to grow and thrive.”
Following the acquisition, Liberty Mutual has named Kim Garland as president of State Auto, she most recently the company’s senior vice president of personal and commercial lines and managing director of State Auto Labs.
He added: “We bring together two organisations of passionate, driven, and talented individuals.
“Our combined strength allows us to significantly expand our relationships with independent agents and brokers, and make more strategic investments in the independent agent channel to continue driving profitable growth.”
